Everyone has noticed the sizes of things at teh grocery store are shrinking, while the prices are increasing.
The same can be said for short sale homes. The price may look low, but it may end up costing you much more.
Karen Fiddler has some great insights into the short sale market place. If you are thinking about looking at short sales for your new home, make sure you and your agent investigate throughly.
If you need assistance with real estate in West Georgia or East Alabama, call Karen at Haralson Realty. 678-521-3585 or 770-574-9221
The little things can frustrate us when they change. The things we take for granted? The things we do automatically? The things we use daily?
A big fallout of the recession is the consumer products industry....in particular the grocery products. The manufacturers have been hit with higher production costs, higher transportation costs and less consumer spending.....how could they adjust and continue to be profitable?
They knew that they couldn't raise prices proportionally to the increase in production costs....people would stop buying the non-essentials.
So rather than raising prices to the level that they would need to to compensate, they made the product size smaller. Have you even noticed that that "gallon" of ice cream is not a gallon anymore? Coffee cans no longer hold a pound of coffee? Sugar is now 4 not 5 pounds? But they look the same. I can handle most of this...... but
My toilet paper no longer fits on my built-in roll holder!!!!!!
I'm getting less for more money. If you don't read the package...you wouldn't realize it!
Short sales are the same (see? you didn't think I could link TP and real estate, but I can). Short sales have nice listing prices...even lower than the same home around the corner. But be careful! The package looks the same, but what you get might be less than you expect.
Short sales often have non-allowed costs and fees!
These are fees the lender decides at the approval point that they are not going to take from their proceeds. Late HOA dues and/or taxes are among the favorite. This can add thousands to the cost.
Short sales often have deferred maintenance issues!
Sadly these sellers are losing their homes....think about that! This is not just another way of taking title, this is a loss of ones HOME. Most people will do all they can before allowing this to happen. Termite, plumbing, appliance maintenance....all are stopped before actually saying that they can't keep the home.
Short sale sellers have no money, nor incentive, to do any repairs!
The sellers will not get any money from this deal. They are upside down in value. They are NOT going to do anything which costs them money. They might even stop doing things like watering the lawn once they get a buyer....they know there is another buyer around the corner.
Short sale lenders are no longer taking any lowball offer the listing agent submits!
This is key!!!
When short sales first made their appearance, lenders and agents were unprepared for them. The lenders were overwhelmed and often took any price which "looked ok." No more....the lenders will take the time needed to make sure they get a market value. That low price might not be the final approval price.....that great deal could evaporate several MONTHS from now.
So "read" the labels and make sure your agent will look DEEPLY into these short sales. KNOW the actual market value and be prepared for it. KNOW the back taxes and HOA dues and be prepared for it. Do your homework!
And the moral of the story? I need a new toilet paper holder.....it's a new day!
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165
Serving all of Orange County, California Real Estate!
Buyer's Agents, Listing Agents, Short Sales, REOs, Equity Sales, Investors
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